Trupanion Q4’23 earnings highlights and strategic insights

Trupanion hosted its Q4’23 earnings call on Feb 15, 2024. Select highlights:

• Total revenue was $295.9 million, an increase of 20% compared to the fourth quarter of 2022.
• Net loss of $2.2 million.
• Deployed ~$15.5 million to acquire nearly 67,000 pets.

• Trupanion identified opportunities to enhance their member experience, primarily through the adoption of a new policy administration system.
• The learning curve associated with this new system is expected to require some time for team members to fully adapt.
• In the interim, as the system is being ramped up, service levels have been observed to be lower than anticipated.
• The company recognized Nationwide as its main competitor in California, which recently received approval for a 68% rate increase in the state.  

Minimum Number of CA Pet Policyholders by Insurer

• Trupanion has introduced new products in North America, including Furkin, PHI Direct, and those available through Chewy and Aflac, adding about 9,000 new pets with an average revenue per pet (ARPU) of $38.6. These products offer less coverage, resulting in lower retention rates and, consequently, a reduced lifetime value for each pet insured.
• Chewy contributed at least 3,152 policies totaling close to $645k in written premium.

Chewy Pet Policies by State

• Alfac offers its pet insurance – powered by Trupanion – to employers with over 500 employees. It reached over 224 policies, bringing in $69k in written premium.

Aflac Pet Policies by State

• For reference, Wishbone Pet Insurance , the employee benefits unit of Pet Benefit Solutions, also reaches hundreds of employers who distribute its pet product. Insurance coverage is administered by Norse Specialty Insurance Company and underwritten by Trisura Insurance Company, Clear Blue Insurance Company, or Clear Blue Specialty Insurance Company. Claims are processed by a third-party administrator, PrimeOne Insurance Company.
• Wishbone’s list of employers include Alliance Material Handling, eharmony, EyePoint Pharmaceuticals, Folger Shakespeare Library, Dicerna Pharmaceuticals, Ecovyst Catalyst Technologies, AlphaStaff, Challenger Performance Optimization, Cato Institute, Domino Data Lab, DYMA Brands, Bates White, Florida’s Natural Growers, Chase Corp, Chatsworth Products, Datacolor, Catapult, DataRobot, ChanceLight, Diamond Baseball Holdings, Allucent, CBOE, Catholic Charities, Battelle Memorial Institute, BJC HealthCare and others.